Editing Negotiation (section)

=== Integrated negotiation ===
''Integrated negotiation'' is a strategic attempt to maximize value in any single negotiation through the astute linking and sequencing of other negotiations and decisions related to one's operating activities.

This approach in complex settings is executed by mapping out all potentially relevant negotiations, conflicts, and operating decisions to integrate helpful connections among them while minimizing any potentially harmful connections (see examples below).

''Integrated negotiation'' is not to be confused with ''integrative negotiation'', a different concept (as outlined above) related to a non-zero-sum approach to creating value in negotiations.

Integrated negotiation was first identified and labeled by the international negotiator and author Peter Johnston in his book ''Negotiating with Giants''.<ref>{{Cite book|url=http://negotiatingwithgiants.com|title=Negotiating with Giants|last=Johnston|first=Peter D|publisher=Negotiation Press|year=2008|isbn=978-0980942101|location=United States|pages=Pages 4 to 5}}</ref>

One of the examples cited in Johnston's book is that of J. D. Rockefeller deciding where to build his first major oil refinery. Instead of taking the easier, cheaper route from the oil fields to refine his petroleum in Pittsburgh, Rockefeller chose to build his refinery in Cleveland, because he recognized that he would have to negotiate with the rail companies transporting his refined oil to market. Pittsburgh had just one major railroad, which would therefore be able to dictate prices in negotiations, while Cleveland had three railroads that Rockefeller knew would compete for his business, potentially reducing his costs significantly. The leverage gained in these rail negotiations more than offset the additional operating costs of sending his oil to Cleveland for refining, helping establish Rockefeller's empire, while undermining his competitors who failed to integrate their core operating decisions with their negotiation strategies.<ref>{{Cite book|url=https://archive.org/details/titan00ronc_0|title=Titan, The Life of John D. Rockefeller, Sr|last=Chernow|first=Ron|publisher=Penguin Random House|year=2004|isbn=978-1400077304|location=United States|pages=Pages 111 to 112}}</ref>

Other examples of integrated negotiation include the following:
* In sports, athletes in the final year of their contracts will ideally hit peak performance so they can negotiate robust, long-term contracts in their favor.<ref>{{Cite journal|date=22 January 2014|title=Athletes' performance declines following contract years.|url=https://www.sciencedaily.com/releases/2014/01/140122170622.htm|journal=ScienceDaily}}</ref>
* A union needs to negotiate and resolve any significant internal conflicts to maximize its collective clout before going to the table to negotiate a new contract with management.
* If purchases for similar goods or services are occurring independently of one another across different government departments, recognizing this and consolidating orders into one large volume purchase can help create buying leverage and cost savings in negotiations with suppliers.
* A tech start-up looking to negotiate being bought out by a larger industry player in the future can improve its odds of that happening by ensuring, wherever possible, that its systems, technology, competencies, and culture are as compatible as possible with those of its most likely buyer.<ref>{{Cite book|title=Negotiating with Giants|last=Johnston|first=Peter D.|publisher=Negotiation Press|year=2008|isbn=978-0980942101|location=United States|pages=Page 4}}</ref>
* A politician negotiating support for a presidential run may want to avoid bringing on board any high-profile supporters who risk alienating other important potential supporters while avoiding any unexpected new policies that could also limit the size of their growing coalition.<ref>{{Cite book|title=Negotiating with Giants|last=Johnston|first=Peter D.|publisher=Negotiation Press|year=2008|isbn=978-0980942101|location=United States|pages=168}}</ref>